Rostow Modernization Model Flashcards
Outline of Rostow Modernization Model
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| 76198035 | Rostow Modernization Model | According to the Rostow Modernization model, each stage is a function of productivity, economic exchange, technological improvements, and income. Economic growth occurs when advancing from one stage to another. 1. Traditional Society 2. Transitional Society 3. Take-off 4. The Drive to maturity 5. High Mass Consumption | |
| 76198036 | Traditional Society | characterized by economic structure dominated by agriculture. -minimal productivity -few exchange transaction -economic change/technological improvements are not sufficient to sustain any growth in per capita output, which is low | |
| 76198037 | Transitional Society (Pre-Conditions for Take-Off) | characterized by increased productivity in agriculture, and modern manufacturing begins to emerge. modern manufacturing remains low as it it the norm. Preconditions for Take-off: -Society engages in secular education -establishes banks and currency -emerging entrepreneurial class -concept of manufacturing emerges, with only a few factories developing at first. | |
| 76198038 | Take-Off | growth becomes the norm and improvements in production lead to the emergence of leading sectors. Income rises across the board, and a new class of established entrepreneurs emerges. | |
| 76198039 | The Drive to Maturity | -Modern technology is fully adopted in all economic activity -new leading sectors emerge -economy demonstrates technological and entrepreneurial skills to produce anything it chooses to, -economy looks beyond the country's border for development. | |
| 76198040 | High Mass Consumption | -leading sectors shift toward durable goods -surge occurs in per capita income and increased allocation to social welfare programs. -the masses can afford goods beyond food, clothing, and shelter. |